Critical Concerns from the report.

• The Puget Sound economy is experiencing an economic shock that will take many months and beyond to recover from.
• Temporary impacts in the very near-term severely affect roughly 40% of all jobs in King, Pierce, and Snohomish counties, with either wage reduction or temporary layoffs (Boston Consulting Group estimate). Many of these jobs will start again once the virus threat has passed and the economy starts up again. Not all businesses will survive this challenge.
• Economic recovery projections depend on predictability of the control of the virus. The immediate focus of all businesses in Washington state should be to help stop the spread of the virus.
• Lower earning households and wage earners have been affected first, with typical jobs affected paying on average $38,000 per year, which includes lower and somewhat higher earners.
• All industries will be affected. A very select few industries may see temporary increased demand, such as household supplies and food providers. Some industries may be able to cope through at-home working and new routines, but all industries will be negatively affected through 2020.
• The economic recovery will require support from all sectors, including policy initiatives to guide resources to support workers most heavily affected.

Report recommendations

• Loosen Lending and Monetary Policy. Monetary policy includes the primary tools of the federal government, but lending support to borrowers must be broadly implemented.
• Rent and debt service relief. Landlords, their financiers, and the federal government must collaborate to give renters and borrowers (commercial and residential) significant flexibility for three or more months after the virus isunder control (which is an undete ined date at this point.) This must go beyond support for small businesses and include medium sized and some larger businesses as well. Offices with employees numbering into the several hundreds will face choices of paying rent or retaining employees.
• Direct payments and support (all sectors). Major employers with capital reserves have stepped into the role traditionally for government to provide direct assistance to small businesses affect in their area. Government provides grants and immediate relief. Employees and households will need direct support.
• Government spending. Capital investments must proceed. Infrastructure investments support communities directly and they create jobs that support local and regional economies.
• Fiscal policy shifts. Washington and its cities depend primarily on sales and use and similar taxes, excise taxes, and property taxes. Cities and the state will find budgeting very difficult in the months ahead to cover the costs of spending critical for relief right now. New funding sources and new approaches to revenue management will be required.

Full report available here.